There was a solid article in the Financial Post today that talked about owning a home as a long term investment. Some have been succesful no doubt at timing the market, most aren't. You see most people around this time in the cycle think that ahead of further interest rate hikes and before more supply hits and demand falls off further as it has been in certain ranges due to interest rates; hst; general economy and european debt, high undemployment, etc., that its the time to cash in and sell. Looking for a longer closing date, insulating themselves with time for the market to drop off a little bit. Then like a stock they can buy into the market at a rosier time---a buyers market. Some economists will argue that the lowered prices from increased supply may be offset by the interest rate hikes increasing the monthlies you pay. It really depends on your financial picture and specifically the home you buy and sell...but timing the market isn't so easy.
We have seen a drop in building permits across the nation and from the ground I'm feeling the shift in momentum away from the sellers market towards a buyers market.
Of course market variables and supply have been changing so fast and furiously where we see interest rates on fixed mortgage go up and then down in a few weeks. This isn't a straight forward market.
Keep doing your homework and learn the market as best you can. Most importantly dont overextend and buy a home in an area with upside potential..preferably one with more then just the natural inflation of the market as those heady gains are behind us for some time now.
Cheers-
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